state of south dakota coronavirus relief fundsfunding $400,000,000 $40,000,000 $10,000,000...

An Overview of Small Business

Grant Programs

October 13, 2020

State of South Dakota Coronavirus Relief Funds

Agenda

Introduction & Overview of Programs

Application and Award Process

Program Eligibility & Award Calculations

Additional Information and Resources

The State of South Dakota received $1,250,000,000 in federal funds to be used for costs incurred due

to the public health emergency in response to the Coronavirus Disease 2019 (COVID-19). In

consultation with the legislature, the Administration has determined that the unexpended portion of

these coronavirus relief funds be spent on several different programs aimed at supporting small

businesses and healthcare providers across the State.


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Program Name Small Business

COVID

Interruption

Small Nonprofit

COVID

Interruption

Small Business

Startup

Program

Community

Based Healthcare

Providers

Acute

Care

in Hospitals

Funding $400,000,000 $40,000,000 $10,000,000 $115,000,000 $15,000,000

Purpose

Small businesses

in South Dakota

under $38.5M in

2019 gross

revenue who

have been

impacted by

COVID-19

Small nonprofits in

South Dakota

under $38.5M in

2019 gross

revenue who

have been

impacted by

COVID-19

Small business

start ups in South

Dakota

established

between 9/1/19 –

6/1/20 who have

been impacted

by COVID-19

Community

based health

care providers

funded by the

state through

Medicaid or

other

federal/state

dollars

Acute care in

hospitals (PPS,

CAH, Specialty)

and Inpatient

Hospice in South

Dakota who have

been impacted

by COVID-19

Award Method Reduction in

business

Reduction in

business

Percent of cash

expenses

Reduction in

business

Reduction in

business

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Application & AwardProcess


Applications will be reviewed after they have been

determined to be complete. Once all applications for

a program are received, final award amounts will be

calculated on a pro-rata share of available funds.

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Applicant will receive a notification indicating grant

approval or denial, and if approved, the dollar amount

of the grant.

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Eligible applicant completes application online on the

South Dakota COVID-19 website at

https://covid.sd.gov/smallbusiness-healthcare-

grants.aspx.

To be complete application must be submitted

through the application portal with all requested

documentation.

Once the application has been initiated, the applicant

will be provided with log-in credentials. The applicant

may re-enter the application portal to access the

application in order to complete the application and

track its status once submitted.

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Awards will be issued to qualifying grant recipients.4

Complete

Application

Application Reviewed

Applicant

Notified of Status & Award Amount

Grant awards

issued to

qualifying

recipients

All funds must

be disbursed

by December 30th 2020

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[email protected]

TIN1: [email protected]



• Correspondence for all applications will be

directed to [email protected], but applicant

must log in through each username to submit

separate applications

• For businesses with only 1 TIN/application, the

preferred option is to use your email address

as your username

Program Eligibility & Award Calculations

Small Business Program Eligibility & Award Calculations

Small business applicants will be able to request funding to compensate for the financial impact of

COVID-19.

Small Business Program Overview

Small Business Eligibility

Award Method"Reduction in

business" calculation

•Businesses must be

physically located in

South Dakota

•Meet financial criteria*

•Provide a certification

that the business is a

going concern

•Have gross revenues of

less than $38.5 million in

2019

Additional Criteria

Total Allocation$400,000,000

RecipientsSmall businesses

Grant AmountMaximum $100,000

per entity

11*Eligibility criteria/calculations further detailed on subsequent slides

Grant amounts for small businesses shall be based on a cashflow from operations model for

March through August as follows:

Small Business Grant Calculation

2019 Cash Flow From Operations


Federal COVID-19 Aid

Eligible Amount for “Reduction in

Business”

“2019 income (March - August) less 2019 cash expenses (March through August, excluding depreciation, amortization, capitalized expenses and noncash expenses) less term debt principal payments (March - August)”

“2020 income (March - August) less 2020 cash expenses (March - August,

excluding depreciation, amortization, capitalized and noncash expenses) less term debt principal payments (March through August)”

“Any Paycheck Protection Program (PPP) funds or other federal COVID grant funding received by the business in 2020”

If the “Reduction in Business is >= 25% of 2019 Cash Flow From Operations, the business is eligible for an award. Final award based on pro-rata shareof available funds.

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Small businesses were eligible to receive a variety of federal funds from various funding agencies,

presenting a unique challenge in avoiding duplication of benefits.

Small Business Programs Grant Calculation


• Paycheck Protection Program Loans

• Economic Injury Disaster Recovery Loan

• Coronavirus Food Assistance Program (CFAP)

• Any other COVID-19 federal payment or grant

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Documentation

regarding COVID-

19 federal aid

received

1. Secretary of State Registration as a domestic or foreign company and

Department of Revenue sales & use tax license

2. W-9

3. Point of contact information (phone, email, physical address)

4. Business TIN (SSN or EIN, if applicable)

o One submission per TIN (Tax ID Number) i.e. Employer Identification

Number or SSN*

5. Bank account information for electronic payment of funds

6. Government-issued ID

7. Articles of incorporation or organization, if applicable

8. Certificate of Good Standing from South Dakota Secretary of State, if

applicable

9. For businesses with greater than $150,000 in 2019 revenue, provide your 2019

tax return and a detailed Profit/Loss Statement on a cash basis (see details in

grant calculation) for March – August 2019 and March - August 2020

10. For businesses with less than $150,000 in 2019 revenue, provide your 2019 tax

returns and 2020 income and expenses on a cash basis (See details in grant

calculation) for March – August 2020

Small Business Required Application Documents

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Required NOT Required

*Sole proprietors with multiple businesses doing business as (DBA) under their SSN must submit all income

sources under a single application. Business owners with multiple TINs must apply separately for each TIN.

Small nonprofit applicants will be able to request funding to compensate for the financial impact of

COVID-19.

Small Nonprofit Program Overview

Small Nonprofits

Award Method“Reduction in

business” calculation

•Nonprofit must be

physically located in

South Dakota



that the entity is a going

concern

•Nonprofits must have

gross revenues of less

than $38.5 million

Eligibility Criteria


RecipientsSmall nonprofits

Grant AmountsMaximum $100,000

per entity

15*Eligibility criteria/calculations further detailed on subsequent slides

Grant amounts for nonprofits shall be based on a cashflow from operations model for March

through August as follows:

Small Nonprofit Grant Calculation




Eligible Amount for “Reduction in

Business”

“2020 income (March - August) less 2020 cash expenses (March through August, excluding depreciation, amortization, capitalized expenses and noncash expenses) less term debt principal payments (March - August)”

“2019 income (March - August) less 2019 cash expenses (March - August, excluding depreciation, amortization, and noncash expenses) less term debt principal payments (March through August)”

“Any Paycheck Protection Program (PPP) funds or other federal COVID grant funding received by the business in 2020”

If the “Reduction in Business is >= 25% of 2019 Cash Flow From Operations, the business is eligible for an award. Final award based on pro-rata shareof available funds.

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Documentation

regarding COVID-

19 federal aid

received



2. W-9




Number or SSN*




applicable

8. For entities with greater than $150,000 in 2019 revenue, provide your 2019

tax return and a detailed Profit/Loss Statement on a cash basis (see details

in grant calculation) for March – August 2019 and March - August 2020

9. For entities with less than $150,000 in 2019 revenue, provide your 2019 tax

returns and 2020 income and expenses on a cash basis (See details in grant

calculation) for March – August 2020

10. IRS letter confirming non-profit status, or the Secretary of State certification

of non-profit status

11. First page of your 990 filing from 2019

Small Nonprofit Required Application Documents

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Small businesses established between 9/1/19 – 6/1/20 in the State of South Dakota will be able to

request funding to compensate for the financial impact of COVID-19.

Small Business Startup Program Overview

Small Businesses Startups

Award MethodPercentage of cash

expenses

•Business must be in

South Dakota


that the business is a

going concern


•Registered business

between 9/1/19 - 6/1/20

•Be open and operating

on date of application

Eligibility Criteria


RecipientsSmall business

startups

Grant AmountsMaximum $100,000

per entity

*Eligibility criteria/calculations further detailed on subsequent slides

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The financial eligibility of South Dakota start-ups can be calculated in one of two ways: reduction in

average monthly income or net operating loss.

Small Business Startup Eligibility Calculation

Reduction in Average Monthly Income Net Operating Loss

1.2 X

Average

Monthly

Income(Prior to March 1,

2020)

Average

Monthly

Income(March 1, 2020 to August 31st 2020)

>Monthly Cash Flow (+)

Monthly Cash Flow (-)


Monthly Cash Flow (+)


Monthly Cash Flow (+)

Demonstrate

that the

business

operated at a

net loss (cash

basis) in at

least three of

the six months

between

March 1,

2020, and

August 31,

2020

After a small business startup passes one of the two eligibility screens, a calculation will be applied to

determine the maximum eligible amount.

Small Business Startup Grant Calculation


Maximum Eligible Amount X 20%

20

2020 Cash Expenses

(March – August), not

including depreciation,

amortization and other non-

cash expenses.*

Final award based on pro-rata share

of available funds.

*For the Small Business Startup program, capital expenditures (cash basis) may be included in the 2020

Cash Expenses calculation

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Small Business Startup Grant Calculation

Small business startup applicants are required to complete and upload an eligibility & calculation

template as part of the application.

The Calculation Worksheet can be found at:

https://covid.sd.gov/docs/SouthDakota_Small%20Business-StartupCalculation%20Form.xlsx

Documentation

regarding COVID-

19 federal aid

received



2. W-9




Number or SSN*



7. Articles of incorporation or organization, if applicable


applicable

9. For businesses with greater than $150,000 in 2019 revenue, provide your 2019

tax return and a detailed monthly Profit/Loss Statement on a cash basis (see

details in grant calculations) for the periods of both September 2019 –

February 2020 and March – August 2020

10. For businesses with less than $150,000 in 2019 revenue, provide your 2019 tax

returns and a monthly Profit/Loss statement on a cash basis (see details in

grant calculations) for March – August 2020)

11. Small Business Startup Calculation Worksheet*

Small Business Startup Required Application Documents

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*Available at https://covid.sd.gov/docs/SouthDakota_Small%20Business-StartupCalculation%20Form.xlsx

Additional Information &Resources

Important Notes & Reminders

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1. Applications will be open from October 13th to October 23rd

2. Business owners and providers with multiple TINs must complete one application for each TIN

• Each application requires a unique registration and username

• Applicants may create multiple usernames under the same email address. However, each

username must be unique and must be in “email address” format: [email protected]

3. Small Business Startup Program applicants must complete calculations on the Microsoft Excel

form provided by the State at https://covid.sd.gov/smallbusiness-healthcare-grants.aspx

4. Sole proprietors applying with a SSN must consolidate all businesses and financial information

under one application

5. Grant amounts calculated at less than $750 will not be awarded

6. Applicants must provide a screenshot of your entity’s Certificate of Good Standing (see

required documents). An official copy from the State is not required

7. Applicants that do not possess Secretary of State Registration as a domestic or foreign

company are permitted to submit an application without providing this document

Next Steps & Resources Available

Next steps:

1. Review lists of required documentation

information in preparation for

applications opening on October 13

2. For small business startups, download the

Small Business Startup Calculation

Worksheet available on the State’s

website,

https://covid.sd.gov/docs/SouthDakota_S

mall%20Business-

StartupCalculation%20Form.xlsx

3. Reach out to the help phone number or

email address for assistance

4. Submit applications from:

October 13th – October 23rd

5. Sign grant agreement

Resources available:

1. Help line: (605) 937-7243

• Open 8AM – 5PM central time

Monday through Friday

2. Email:

Businesses Grants:

[email protected]

Healthcare Grants:

[email protected]

3. Program communications, trainings,

application, frequently asked questions:

• https://covid.sd.gov/smallbusiness-

healthcare-grants.aspx

4. Daily office hours:

• Healthcare programs: 3PM Central

• Small Business programs: 4PM Central